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Step 2 - Map potential impacts

Objectives of this step

Develop an overview of main areas for
potential human rights impacts of your company and its business relationships

Identify groups of people that could be affected
by your business activities and relationships

Approach & possible activities

(Potential)
human rights impacts can stem from your business’ own operations or be linked
to the manufacturing of its products or services, or their use throughout the value
chain. To obtain an overview, try to generate a simple map of your main
business activities and relationships from raw materials, manufacturing and logistics
through to delivery of the product or service to the customer (and not
forgetting returns or recycling if that is part of your business).

Then based
on your knowledge from step 1, think through which groups of people could be
affected along this simplified value chain, and how their rights could be impacted.
Check H&S’ sample overview of potential impacts below as inspiration for
how to proceed.

It is
helpful to make explicit who the individuals and groups are who may face a
higher risk of being (negatively) affected by your business. For example, they
may have
special requirements, or are likely to struggle to make their needs known, or
are traditionally excluded in society. You can use H&S’ overview below as a
starting point.

Your
initial impact map will be imperfect and you will identify areas where you need
further information. This is simply a starting point and you will refine your overview
during the following steps.

To start assessing your human rights risks

You can use media and civil society
reports or databases to help you understand more about the main areas of
potential human rights impacts associated with your companies’ activities and
relationships. They will naturally depend on your sector and the countries you
are operating in. A pharma company, for example, can impact the health of its
consumers through its products. For a food and beverage company, working
conditions in its agricultural supply chain will be very relevant. In the IT
sector, privacy and freedom of expression of users will be an important area of
potential impact.

If you are looking for a quick overview
of major human rights issues at product or country level the CSR Risk Check can help you. Other sources providing information on human rights
issues at country level free of charge are:

Those reports and databases have not
been designed for a business audience, so you have to translate the information
back to your specific business activities and relationships and how they could
impact people. For example, if governmental authorities systemically
discriminate against women or a minority it is very likely these groups are
exposed to higher risks at the workplace or as part of local communities affected
by a new production plant or an investment project in this particular country.

If you have good contacts already, and
if it is feasible for you, you can also start to reach out informally to trade
unions, relevant NGOs, business associations or government counterparts at this
early stage to understand what they think are potential impacts for your sector
and company and refine your impact map with that input.